Customs duty boost for online shoppers

14 November 2008

Internet shoppers will no longer have to pay customs duty on purchases they make outside the EU up to the value of £105.

At the moment customs duty is payable on those items online shoppers buy from non-EU countries that are worth £18 or more.

However, the change will see the duty-free limit extended to £105 as from 1 December.

Most likely to benefit are consumers who purchase goods such as DVD players from the United States, which currently carry a customs duty charge of 14 per cent.

HM Revenue and Customs pointed out that VAT will continue to be charged on goods costing more than £18.

Import duties tend to be set at different rates depending on the item. Gold and silver jewellery attracts a charge of 2.5 per cent, for example, while CD players have a rate of 9.5 per cent.

Doug Tweddle, who is HMRC’s director of Customs and International, said: “Whether you’re looking to get your hands on the latest computer game, designer clothes or DVDs, it’s important to be aware of the law on customs charges, especially as this is about to change.”

Mr Tweddle warned online shoppers to keep in mind the regulations on EU import duties: “If you’re buying goods from countries outside the EU, it’s in your interests to know what the rules are. For example, some websites don’t always make clear there is duty or VAT to pay, while others may misrepresent or undervalue your goods to try and avoid paying charges. But if goods are found to be wrongly declared, they may be seized and the customer penalised.”